Artisan Partners Asset Management Inc. Class A Common Stock (APAM)

FairStock Score: 85/100 — HIGH CONVICTION

Key Financials

Strengths

• Generates $193 million in annual free cash flow (7.1% yield on market cap)
• High return on equity of 49.3% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.40, providing financial flexibility
• Attractive 8.6% dividend yield providing steady income returns
• FairStock composite score of 85/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Trades significantly above Graham Number ($24) with negative 61% margin of safety—limited downside protection

AI Analysis

Artisan Partners Asset Management Inc. Class A Common Stock is a small-cap financial services company valued at $2.7 billion. The business generates $1.2 billion in annual revenue with a 7.9% net margin and $193 million in free cash flow. From a quality standpoint, Artisan shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 2.8 in the grey zone. On valuation, the stock is deeply undervalued on a P/E basis at 9.4x, with trades above its Graham Number with a negative 61% margin. Growth dynamics show revenue growing at 12.9% and profit growth of 36.0%. The 8.6% dividend yield adds an income component for patient holders. Our composite FairStock Score of 85/100 reflects strong fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates Artisan's consistent 49% ROE at just 9x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $193 million in annual free cash flow (7.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer